3. You have been hired by the state of Schaefer as a budget analyst to develop a capital improvement plan. The state had an economic windfall with the collection of revenue from the gaming industry and wants to make good use of some of these funds to improve the states infrastructure among other public institutions in the state. You have been given a budget of $600 million to develop a five-year CIP. You cannot spend more than your total allotment under any circumstance. Here is some useful information that you should use in developing your FY 2013-2017 CIP. The state assumes that you will not be able to solve all of the problems in the state over a five-year period, but they do expect a lot. First, complete the spreadsheet showing that you have spent no more than $600 million. Second, briefly justify your spending patterns using the two headings: High Priority Tasks and Low Priority Tasks. The projects that you expect to complete should be justified in the High Priority Tasks section. The projects that you will not complete should be justified in the section Lower Priority Tasks. Read all of the information before you begin to work on the justifications. The bullet points below provide all of the information that you need to in order to complete your CIP. See Appendix 4D for a copy of the spreadsheet.

The states primary and secondary educational facilities can essentially be split into two types: Functional and Dysfunctional. Dysfunctional educational facilities are located primarily in the economically depressed Schaefer Delta. There are 45 schools in this area that are identical and each is in need of repair and renovations. Repair and renovation cost average $250,000.00 per school. School renovations should be completed within the first three years of the CIP (equal amounts spent each year). The Functional schools are completely up to date and require no repair or renovations. The state is plagued with a number of two lane highways that cross the state. The first highway is Highway 66 and it goes south of the Davisville state line through the Schaefer Delta to Brownsville (240 miles in length). It is the main north-south route. Given the low economic productivity in the state, it is vital that this highway be completed at some point. Should you decide to expend funds to complete Highway 66, you must complete at least 90% of the highway. Highway 87is the second major highway in the state and it goes from the Arkadelphia border to the Columbia border (85 miles that is currently two-lane). It is the main east-west corridor. Improvement to the highway system should reap multiple economic benefits. Particularly in the Delta Region. Should you decide to expend funds to complete the highway, you must complete at least 95% of Highway 87. It will cost $2 million per mile to complete the four-lane highway system (Highway 66 and 87). The state also has 87 county health departments. Thirty-six of these building are in need of repair. Three additional buildings should be constructed adjacent to existing health departments in Desoto, Jackson and Bolivar counties. It is estimated that it would cost $300,000.00 to build each building. Repair costs are estimated to cost a total of $10 million. Bolivar County has the greatest need followed by Jackson and Desoto County respectively. The state Supreme Court building is in need of repair. Given the nature of the repair, at least two fiscal years will be involved with the same amount spent each year. The repairs cost $5 million. For the sake of beautification, the state has also decided to build six new Welcome Centers in the state. These fully functional centers will cost the state $1,000,000.00 each. The Welcome Centers will be located at both ends of the border for Highway 66, Highway 87 and Interstate 55. With the new highways under construction, the Welcome Centers should improve the image of the state. You can spend up to the following amounts per fiscal year: 2013, $115 million; 2014, $110 million; 2015, $40 million; 2016, $165 million; and 2017, $180 million. Note: the preceding amounts exceed your total allotment.

The table below shows the total costs of all projects fully funded. However, please remember that you are limited to $600 million in your CIP budget.

Fully Funded Projects Dysfunctional Schools HWY 66 HWY 87 Welcome Centers New Health Departments Health Department Repair Supreme Court BDLG Cost $11,250,000 480,000,000 170,000,000 6,000,000 900,000 10,000,000 5,000,000 $683,150,000 Total Sample Response 3. State of Schaefer Capital Improvement Plan FYs 2013-2017 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total # in Grade 45 240 miles 85 miles 6 Dysfunctional Schools HWY 66 HWY 87 Welcome Centers New Health Depts. Health Depts Repair Supreme Court BDLG TOTAL 3 36 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 List High Priority Tasks: Health Depts completed SC completed Hwy 87 HD repair Dysfunctional Schools List Lower Priority Tasks: Hwy 66 is not completed Fully Funded Projects Dysfunctional Schools HWY 66 HWY 87 Welcome Centers New Health Departments Health Department Repair Supreme Court BDLG Cost $11,250,000 480,000,000 170,000,000 6,000,000 900,000 10,000,000 5,000,000 $683,150,000 Total Sample Response 3. State of Schaefer Capital Improvement Plan FYs 2013-2017 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Total # in Grade 45 240 miles 85 miles 6 Dysfunctional Schools HWY 66 HWY 87 Welcome Centers New Health Depts. Health Depts Repair Supreme Court BDLG TOTAL 3 36 1 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 List High Priority Tasks: Health Depts completed SC completed Hwy 87 HD repair Dysfunctional Schools List Lower Priority Tasks: Hwy 66 is not completed